USD/JPY Price Analysis: Looks set to refresh 24-year high above 136.00

• USD/JPY rebounds from intraday low as weekly support line defends buyers.
• Upbeat RSI, sustained trading beyond 200-HMA joins upside break of short-term horizontal hurdle to favor bulls.
• Rising wedge teases sellers at multi-year high, bulls aim for 136.70 hurdle.

USD/JPY fails to confirm the weekly rising wedge bearish chart pattern as it bounces back from the pattern’s support line to regain upside momentum around the highest levels since 1998. That said, the yen pair picks up bids to 136.25 heading into Wednesday’s European session.

Other than the pair’s rebound from the short-term support line, a successful break of the one-week-old horizontal hurdle, now support around 135.40 joins the firmer RSI (14) line to keep buyers hopeful.

However, multiple pullbacks from 136.70 test the USD/JPY pair’s upside momentum.

Following that, the upper line of the stated wedge, near 136.90, will precede the 137.00 round figure and the 140.00 psychological magnet to lure the pair buyers.

On the contrary, a clear downside break of 136.20 support could direct the USD/JPY pair towards the resistance-turned-support line near 135.40.

However, the 200-HMA level of 134.60 may challenge the quote’s weakness past 135.40, failures to do so highlight the theoretical target of the rising wedge, around 131.00.

USD/JPY: Hourly chart

Trend: Further upside expected